NEW YORK (Reuters):
INVESTORS YESTERDAY took a sceptical view of Mirant Corp.'s US$8 billion unsolicited offer for power generator NRG Energy Inc., selling Mirant shares while NRG stock remained far below the proposed price.
NRG rejected the US$8 billion cash-and-stock bid, which Mirant disclosed on Tuesday evening, saying it undervalued its shares, that Mirant's stock was a weak currency, and that it is not the time for a sale, given industry growth trends.
The unsolicited offer valued NRG at US$57.16 a share, a 33 per cent premium to the stock's closing price on Tuesday.
NRG shares were up US$7.07, or 16.4 per cent, at US$50.08 in Wednesday afternoon trade, while Mirant shares fell 5.2 per cent, or US$1.32, to US$23.93, both on the New York Stock Exchange.
Some analysts said the Mirant offer did not value NRG highly enough.
